Asset Quality Score
In this test, Bankrate tries to determine the impact of troubled assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.
Having a large number of these kinds of assets could eventually require a credit union to use capital to absorb losses, reducing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, pushing down earnings and increasing the chances of a failure in the future.
FEDERAL EMPLOYEES scored 40 out of a possible 40 points on Bankrate's test of asset quality, exceeding the national average of 38.15.
The credit union's ratio of troubled assets was 2.00 percent in our test, less than the national average and suggestive of greater financial strength than other credit unions.